Management Chapter 8
Core Competence
Something that the organization does particularly well in comparison to others
Strategic Business Unit
A division of the organization that has unique business, mission, product or service line, competitors, and markets relative to other units of the same organization
Target customers, Exploit core competencies, Achieve synergy, Deliver value
Elements of competitive advantage
Synergy
Exists when the organization's parts interact to produce a joint effect that is greater than the sum of the parts acting alone
Business Level Strategy
Pertains to each business unit or product line within the organization
Functional Level Strategy
Pertains to the major functional departments within each business unit, such as manufacturing, marketing, and R&D
Corporate Level Strategy
Pertains to the organization as a whole and the combination of business units and products that make it up
Strategy
The plan of action that describes resource allocation and activities for dealing with the environment , achieving a competitive advantage, and attaining goals
Strategic Execution
The stage of strategic management that involves the use of managerial and organizational tools to direct resources toward achieving strategic outcomes
SWOT Analysis
An audit or careful examination of strengths, weaknesses, opportunities, and threats that affect organizational performance
Formulation
Assessing the external environment and internal problems to create goals and strategy
Strategic Management
Refers to the set of decisions and actions used to formulate and implement strategies that will provide a competitively superior fit between the organization and its environment so as to achieve organizational goals
Competitive Advantage
Refers to what sets the organization apart from others and provides it with a distinctive edge in the marketplace
Strategy Formulation
The stage of the strategic management that includes the planning and decision making that lead to the establishment of the organization's goals and a specific strategic plan
Execution
The use of managerial tools to direct resources toward accomplishing strategic results